tv Book Discussion on Lost Decades CSPAN February 17, 2016 1:13am-1:37am EST
issue because the problem is panic. and that is william jennings bryan to. who is the liberal to regret populace said we should have fdic insurance in taft said insurance krises moral hazard. those were the issues upon the table. so when the team than but italy passes to appease the community papers of the country because 85 percent will not go to the treasury.
it is called the pores in spain to italy pays 2 percent with a cap of $500 this is back in the old days when they got interest for our money. these are not your customers and immediately it will become self sustaining with around 32 million in deposits. to say that system was extremely popular at was the immigrants. in and they recognize them from the countries they came from.
and then they come with pamphlets. they fled the post office with all their money. even though they're on the 15 percent of the population. as the postal bank swelled with deposits and failing every year for three years. at the end of the great depression 1.2 billion dollars of deposits into this fund and this trend would have continued had they not chosen and fdic insurance. and was convinced it was a
compromise but in the postal banks become less necessary. after the great depression to pay off the debt and the world war. so they start to sell billboard bond. tueber i though war bond to pay off that debt to the tune of $9 billion. and there is a sharp deposit of all the soldiers out friday and so the only institution is the post
office because it specializes in mail. mask they have a burgeoning economy with his golden era. so every community has a big so the post office starts to lose the customers because the money flows back to the banks ben johnson ens the baking to say it is no longer necessary. but 30 years later or 20 years later those basics are no longer there. one of the reasons why i say
it could succeed so well is because of the public function. it was non subsidized by the federal government also data profit-making institution and. nor was it intended as such it was to encourage thrift david the economy. also has safeguarding of thousands to trust no other institution in that is crucial for error the key for our banks to function. you can do fdic insurance but for many years it was the alternative and also of
the central bakes' of sorts. to use them as liquidity and helpful to find in the wars. and and so i in greece should bring it back with small savings or checking or money transfer. this would fill that floyd of the payday lenders and doing something it did for our history and in most other countries abroad. the people call this a revolutionary idea end it
couldn't be farther we propose this in 1870 and we did this for a long time. but the public for got or it seems like such a public contrition but we already had the post office with an added revenue stream. just as it has funded to read into a mortgage markets to also have a small market that all loans are risky. into with those committed the basics are doing i kidding getting into that
or so but does use said it is hard. there is the post office bill that it could add any more services so it is possible you could expand the definition of money orders it use that to look like transactions or savings accounts with the $90 billion industry. in we could make the case with those non legislative routes and that is not a
good idea. >> i imagine talk about those payday lenders. is that what is invested in the current system? or should they be behind those systems? >> they will only say now then we have to convince them. [laughter] beazer not big bang customers. and that is a crucial point. so wal-mart tried to give the bank of the big basin and the small banks shut it down. but if they don't want you
to do it you don't that is just part of the lobbying system. so you get them on board. that is the proposal to help with the servicing then the only valid opposition to say i am supporting payday lenders ended don't want this to pass. >> they have left the market and the basics are invested through investments that i don't think they care that strongly about. looking at the debates of 1910 it could happen today. we don't want the government
involved you have to do a trade-off. one to get the big soundboard with the community reinvestment act requirement that says if you have a branch of the you cannot exclude poor people. to have a of they khanate rich area and then put the light around the community and led to their. they always try to fight this but i would be willing to give up to say you don't have those responsibilities.
>> that growing demand of on-line banking? >> a fee if you did it would look like any other bank you get the atm card but the on-line checking account with the servicing options and did fact a lot of low income folks listed in the cash economy so they do have though way to pay for these on line. to pay $5 to get it and then
two years to check that budget a lot less money goes into this so one day in the basic account does is converts to digital currency. and eventually the transactions are all on line. i went to set up maya water and there is a long lead of people trying to pay their water bill in cash. because they turned their paychecks into cash and it takes up some of the lunch hour. all of my bills go to auto pay. that is another way to let
them benefit. >> i will not take questions from you. [laughter] >> that is one of my students. >> i am just kidding. >> it took three years but could use speculate how long for a new system? >> the post office can now with members of the needy billion dollar sector if we got 10 percent of that it immediately cut up the shortfall. of $13 billion in for political reasons so maybe two or three years but soon
>> so currently there are paid day lending institutions is and will that be hard to change that public mindset? >> i don't always trust surveys but 90 percent of the respondents talked about the big banks with the and there is help people feel. alatas feel angry however it said this before but if you think of the post office says a dinosaur but not a shark people don't trust
space people don't even trust them anymore. they know is that bad product and where they will kill them with keys. so it isn't a place that will screw you so anecdotally they did not trust them not all rural lot of stuff happened outside of it. there was a feeling that people would feel comfortable there. and there is a class that was purposeful that the old days before insurance l.a. of baker would protect
themselves with very few see buildings with marble and gold that was very much the economic decisions and to tell the public we are good. but don't run because as soon as the public runs it is over. david could gold bars of the window to say we are fine. don't run in here. but now they have the rigo freelance the building is. if you don't speak that language with the payday lenders they're very big corporations to put up the neon signs that we are cool with the community that they